Ok, to correct a few people here:
The Pippin was a joint venture with Bandai. They didn't have full control over the product. Furthermore Apple is a very different company to what it was back then.
Whats this about 'every few months'? It may be a joke, but cmon, thats a bit unfair. Besides isn't incremental updates something that is happening already? PS2/3 Slim, 360 Slim, Wii without Wifi to make it cheaper, goodness knows how many PSP/DS iterations...
Sure, a lot of Apple products are expensive, but look at the iPad; competitors are really struggling to meet that match point. Apple can do affordable products; they're just affordable based on their quality, similar to the PS3 which crams a lot more stuff into a slightly more expensive package.
I would make such a decision depending on what the finished product looked like. I certainly don't make a judgement based on rumours and assumptions, Apple is no exception. However, considering I'm an Apple head, and they generally make very good quality products, I'd say yeah sure, I'd probably jump in the bandwagon. Of course, they'd have to cater to the more 'mature' *cough* market before I'd be willing to get one... good games make or break a console, after all.